Provisions regarding the allotment of shares in Tanzania.

The general provision regarding the allotment of shares encompasses principles analogous to offer and acceptance in contract law. Several key considerations apply to the process:

Proper Authority: Allotment necessitates a resolution from the company's board of directors. Delegation of this duty by directors is permissible only in accordance with the articles of the company.

Reasonable Time: Allotment must occur within a reasonable timeframe. Failure to do so relieves the applicant of the obligation to accept the allotment.

Communication: Notification of allotment to the applicant is essential for legal completeness. When postal communication is employed, the provisions of Section 4(2) of the Law of Contract Act Cap 345 come into effect.

Absolute and Unconditional: Allotment must be absolute and unconditional. If an application for shares carries conditions and those conditions remain unfulfilled, the applicant is not obligated to accept the shares.